Crisis in California?

That seems to be the word all around the internet. The buzz is rolling in from all over the place.

Arnold Schwarzenegger will declare a fiscal state of emergency in California after badly miscalculating the deficit condition in the Golden State. Last August, he predicted that the state would have a $4.1 billion reserve at the end of this fiscal year, but a legislative analyst predicted in November that California would have a $10 billion deficit. Schwarzenegger now says it's even worse than that:

Here is another view.

Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January to reduce an anticipated $14 billion budget deficit, pressuring lawmakers to fast-track spending cuts and other solutions. The Republican governor has signaled that he wants to cut spending across the board in state programs, while Democratic leaders have said that both spending reductions and tax increases need to be considered...

Let's get a sampling of California bloggers... First, here is a self described "progressive"

Well, this puts a damper on our ever-so-sunny outlook in Sacramento.Spending will likely be slashed, but when are we going to address the real problem? We can't keep going on this boom/bust budget roller coaster that we are riding. Maybe we can appoint John Laird as our fiscal administrator. Trust me, things would be way better than they are now.So...um...John Laird for Fiscal Overlord '08!

Conservatives in Calis blogging world are no less happy...

California Gov. Arnold Schwarzenneger is about to declare a fiscal emergency thanksto a complete mishandling of the budget by he and the legislature: Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January to give him and the Legislature more power to deal with the [...]

Hard to spin this as anything but a problem from the Governor, but stay tuned...